2014 Asset Class returns and Market Performance

Last year’s stock market performance is marked by the continuation of US broad market outperforming non-US Markets. The S&P 500 Index returned 13.69% in 2014 and the MSCI World ex US Index returned -3.47%. Let’s look at how major asset classes and a moderate diversified portfolio performed in the 2014 calendar year. Over the 20 year period, a diversified portfolio continues to provide almost all of the annualized return (8.28%) of a 100% broad stock market portfolio (Russell 3000 annualized return, 9.47%) with less drama.

The 2014 Callan Periodic Table of Investment Returns was recently published. A link to the Periodic Table is here. BlackRock has a periodic table tool, which supports the creation of customized reports. I prefer the BlackRock tool because the table includes a Diversified Portfolio. A link to the BlackRock 2014 table is here. You can also click on the thumbnail image below. The tool has been updated to include historical performance of inflation-protected bond funds (TIPS) for the first time.